- Market Sentiment: The decline in XPeng's stock price by 45% year-to-date2 suggests a negative market sentiment. However, without a significant increase in price, a short squeeze is not likely to occur.
- Financial Performance: XPeng's financial reports show growth in revenue and net income, with a net income growth rate of 44.33% and a total revenue growth rate of 54.42%3. This growth could mitigate the risk of a short squeeze, as it indicates the company is expanding and potentially less vulnerable to a short squeeze.
In conclusion, while XPeng has a high short interest ratio, the current market conditions and financial performance do not strongly suggest an imminent short squeeze. However, if there were a significant positive development, such as a major strategic partnership or breakthrough in technology, that could potentially change the outlook and create conditions for a short squeeze.